Terra continues to plummet, down 73% today: time to buy the dip?

Terra continues to plummet, down 73% today: time to buy the dip?

By Daniela Kirova - min read

After its stablecoin lost its currency peg to the USD, Terra entered a downward spiral. The tendency continues today, even more prominently than yesterday, when LUNA “only” lost half of its value. 

Terra had dropped to #14 on Coinmarketcap, but today, it is all the way down to #29. Is it time to buy the dip before it’s too late? 

If you want to know more about Terra, can it give you good returns, and the top places to buy Terra now, you’ve come to the right place. 

Top places to buy Terra now

What is Terra?

Terra tried to set itself apart through its use of fiat-pegged stablecoins, claiming it combined the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. 

This is a reliable strategy, only its stablecoin UST lost its peg, which is why all this happened. The stablecoin was actually not backed. 

The algorithm that was said to adjust stablecoin supply based on demand did not help. It gave LUNA holders an incentive to swap LUNA and stablecoins at profitable exchange rates to either expand or contract the stablecoin supply to match demand. 

Currently, neither LUNA nor UST are in demand. Almost all leading exchanges have blocked withdrawals. 

Should I buy Terra today?

Terra can definitely be worth investing in if your timing is right. It may not be now. If you believe it will recover, this is a risk you must take. 

Any investment decision should take your risk tolerance into account. Don’t take any price predictions at face value.

Terra price prediction

Analysts remain bullish on Terra despite the drop. CryptoNewZ predicts it will trade between $78 and $85 per coin next year. Wallet Investor’s one-year price forecast is $151.

Coinpedia expects LUNA to trade between $132 and $257 at the end of next year. Gov Capital joins bulls with its price prediction of $166 in one year. 

Terra on social media